CALGARY, December 3, 2013, Groundstar Resources Limited. ("Groundstar", "the "Company", "we", "us", or "our") (TSXV: GSA US: GRDSF symbol) is pleased to announce that, pursuant to its previously announced strategy to add production volumes domestically, it is for the first time since incorporation now operating and producing hydrocarbons in North America. Groundstar has drilled a successful oil well in Saskatchewan and continuous oil production has commenced at the 3-13-45-26W3M well (the "3-13 well") which was directionally drilled to a total depth of 740 meters into the Mannville formation. The well encountered approximately 4 meters of pay with approximately 32% porosity. In terms of net pay thickness, production and optimization plan, and wellbore fluid levels, the 3-13 well compares favorably to the best producer drilled to date in the pool. The off-setting producer has cumulative production in excess of 32,000(1) barrels during its first 14 months of production. Further to Groundstar's press release dated November 13, 2013 and its agreement with a mid-sized Canadian exploration and production company to partner on a high-netback, multi-well program in the Western Canadian sedimentary basin, Groundstar has now participated in the drilling of a shallow heavy oil well (0.425 net) to date in 2013 as part of the program. Given the encouraging results, the Company will continue to evaluate ongoing development and resumption of drilling operations.
Groundstar also announces the appointment of Mr. Murray Stodalka as a director of the Company. Mr. Stodalka is a Professional Engineer with extensive senior management experience in the oil and natural gas industry, and is Waldron Energy's Executive Vice President, Engineering and Operations. Prior thereto, he was the Vice President of Engineering and Operations of Compton Petroleum Corporation and led a corporate strategy that built that firm from a small private start-up to a founder of the NYSE listed company with 32,500 boe/d. Previously, Mr. Stodalka held senior technical positions with Pennzoil, Exxon USA and with Texaco Canada. Mr. Stodalka holds a B.Sc. in Mechanical Engineering from the University of Saskatchewan and has been a member of the Association of Professional Engineers and Geoscientists of Alberta since 1982.
(1) IHS ACCUMAP. This is taken from an independent source. The Company cannot verify that an independent reserves evaluator prepared the information referenced above.
This news release does not constitute an offer to sell or solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Groundstar Resources Limited
Incorporated in 1968, Groundstar Resources Limited is a diversified publicly traded oil and gas company with exposure to 7.3 million gross acres of resource assets. The Company is actively growing a portfolio targeting producing oil and gas assets with development opportunities and exploration upside. The Company's current portfolio of resources assets provides both near term and longer term potential. Groundstar is quoted and trades under the ticker symbol "GSA" in Canada and "GRDSF" in the United States.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This press release may contain forward-looking statements within the meaning of applicable securities laws including expectations regarding the company's drilling and exploration plans, estimates of reserves and potential future production from analogous wells as well as government and third party approvals relating thereto. Forward-looking statements may include estimates, plans, anticipations, expectations, opinions, forecasts, projections, guidance or other similar statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses and health, safety and environmental risks), commodity price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. In addition, the appointment of a new director of the Company is subject to certain regulatory approvals. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained in this press release are made as of the date hereof and the Company undertakes no obligations to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Data obtained from the initial testing results at the well(s) identified in this press release, which may include barrels of oil produced and levels of water-cut, should be considered to be preliminary until a further and detailed analysis or interpretation has been done on such data. The well test results obtained and disclosed in this press release are not necessarily indicative of long-term performance or of ultimate recovery. The reader is cautioned not to unduly rely on such results as such results may not be indicative of future performance of the well or of expected production results for the Company in the future.
Groundstar Resources Limited, Suite 2300, 144 4th Avenue SW, Calgary, Alberta T2P 3N4
403.608.6505 or 403.265.2549
NOT FOR DISTRIBUTION TO THE U.S.A. NEWS WIRE SERVICES OR FOR DISSEMINATION TO THE U.S.A.
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